Hyundai Gears Up for Mega IPO; Set to Solidify Asian Dominance

New Delhi: Hyundai Motor Company is planning to unveil its initial public offering soon which would be considered to be the biggest listing ever in the South Asia country while marking above $2.5 billion.

The automobile company is recently in talks with international banks including Goldman Sachs, Citi Morgan Stanley, JP Morgan, Bank of America, HSBC, Deutsche Bank, and UBS. The illustrated value of the company is $22-28 billion.

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The company is exploring a 15-20 percent dilution to raise $3.3-5.6 billion. Among big Indian auto companies, only Maruti Suzuki [Rs 33.4 lakh crore] and Tata Motors [Rs 29.3 lakh crore] are valued higher at current market prices.

Hyundai Motor Company is listed in South Korea at a market capitalization of $39 billion. As per the valuation estimates of HMIL, it will be valued at $28 billion around 48 times FY23 earnings while, at the lower end of the band at $22 billion, it would be 38.4 times.

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India is the third-biggest market for the Hyundai Motor Group after the US and South Korea as per recent data while in 2023, HMIL contributed 15 percent to the group’s global sales. India is likely to emerge as the largest market for the company shortly as turnover crossed a milestone of Rs 60,000 crore [$7.2 billion] in FY23, up 27% from FY22. The profit surged 62% to Rs 4,653 crore, as the highest among non-listed automotive companies in the country.

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